2 Views

Question : S  Ltd. issued 40,000 Shares of  Rs. 10 each, for  Rs. 12 each payable as under:

On application  Rs. 2 per share, on allotment  Rs. 5 per share (including premium), on first call  Rs. 2 per share and on second and final call  Rs. 3 per share.

Applications were received for 60,000 shares. Allotment was made on pro rata basis to the applicants for 48,000 shares, remaining applications being refused. Money overpaid on application was applied towards amount due on allotment.

A, to whom 1,600 shares were allotted, failed to pay the allotment money and B, to whom 2,000 shares were allotted, failed to pay two calls. These were subsequently forfeited after the second and final call.

Question:- At the time of forfeiture of shares, share forfeited account will be credited _______.

Option 1: Rs. 13,840

Option 2: Rs. 10,000

Option 3: Rs. 11,600

Option 4: None of these


Team Careers360 2nd Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: Rs. 13,840


Solution : Answer = Rs. 13,840

Equity Share Capital A/c   Dr.           16,000

Securities Premium A/c     Dr.            3,200

To Share Forfeiture A/c                                      3,840

To Equity Share Allotment A/c                            7,360

To Equity Share first Call A/c                             3,200

To Equity Share Second and Final Call A/c       4,800

(1,600 shares held by Ram forfeited for the non-payment amount due including premium)

Equity Share Capital A/c      Dr.          20,000

To Equity Share Forfeiture A/c                         10,000

To Equity Share First Call A/c                           4,000

To Equity Share Second and Final Call A/c      6,000

(2,000 shares held by Shyam forfeited for non-payment of amount due)


Therefore, the total amount credited to the Share Forfeiture A/c  = Rs.3,840 + Rs.10,000 = Rs.13,840.
Hence, the correct option is 1.

Related Questions

UPES Integrated LLB Admission...
Apply
Ranked #28 amongst Institutions in India by NIRF | Ranked #1 in India for Academic Reputation by QS University Rankings | 16.6 LPA Highest CTC
SLAT 2025 - The Symbiosis Law...
Apply
Conducted by Symbiosis International (Deemed University) | Ranked #5 in Law by NIRF | Ranked #2 among best Pvt Universities by QS World Rankings
Jindal Global Law School Admi...
Apply
Ranked #1 Law School in India & South Asia by QS- World University Rankings | Merit cum means scholarships
Symbiosis Law School Pune Adm...
Apply
NAAC A++ Accredited | Ranked #5 by NIRF
Nirma University Law Admissio...
Apply
Grade 'A+' accredited by NAAC
ISBR Business School PGDM Adm...
Apply
180+ Companies | Highest CTC 15 LPA | Average CTC 7.5 LPA | Ranked as Platinum Institute by AICTE for 6 years in a row | Awarded Best Business Scho...
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books